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30 Aug 2015
EUR/NOK bulls losing breath
The graceful upward trajectory of EUR/NOK on the weekly chart finds an offsetting bearish harami, a pattern comparable to an Western inside bar.
Prices challenged the 21-week 2-standard deviation upper band by printing outside of its boundaries in the last two weeks. The bearish pattern also occurs against the context of a 14,3,3-sensitive stochastic tracking above the 80 mark.
Although this oscillator assumes that prices tend to close near their high in an upwardly trending market, it should now react with any eventual weekly close near the lows.
Traders might search for this price confirmation as well as an invalidation of the pattern in the form of a new weekly high.
Prices challenged the 21-week 2-standard deviation upper band by printing outside of its boundaries in the last two weeks. The bearish pattern also occurs against the context of a 14,3,3-sensitive stochastic tracking above the 80 mark.
Although this oscillator assumes that prices tend to close near their high in an upwardly trending market, it should now react with any eventual weekly close near the lows.
Traders might search for this price confirmation as well as an invalidation of the pattern in the form of a new weekly high.